PENGARUH BELANJA DAERAH TERHADAP PERTUMBUHAN EKONOMI DI WILAYAH PROVINSI BANTEN TAHUN 2010-2019

Abstract

This study aims to analyze the effect of government expenditure through 5 types of expenditure, namely personnel expenditure, goods and services expenditure, capital expenditure, grant expenditure and social assistance expenditure on economic growth in Banten Province. This study also looks at the effect of each type of expenditure in the North Banten and South Banten areas as an effort to find strategies to reduce inequality in the North Banten and South Banten areas. The data used in this study is panel data, which is composed of 8 districts/cities in Banten Province in the 2010-2019 research period. Based on the results of the regression testing that has been carried out for the Banten Province as a whole, of the 5 spending variables in the model, 2 variables show a positive and significant influence on economic growth, namely the grant expenditure variable and social assistance expenditure. 1 variable shows a negative and significant effect on economic growth, namely the variable for goods and services expenditure, and 2 other variables, namely personnel expenditure and capital expenditure, showing no significant effect on economic growth in the Banten Province. In the North Banten region, capital expenditures have a positive and significant effect, personnel expenditures have a negative and significant effect, while goods and services expenditures, grant expenditures and social assistance expenditures have no significant effect on economic growth in the region. In the South Banten region, grant spending has a positive and significant effect, personnel expenditure has a negative and significant effect, while expenditure on goods and services, capital expenditure and social assistance expenditure has no significant effect on economic growth in the region.